Centre to issue loans up to Rs 100 cr for MSME units under  Mutual Credit Guarantee Scheme; check details

The center has been approved by the Center for Msmes (MCGS-MSME) Mutual Credit Guarantee Scheme. This scheme will provide a 60% guarantee member (NCGTC) member-R. Credit objects to Rs.100 Crore Rs.

The scheme will provide 60% warranty coverage for credit institutions (MLIS) credit facilities before Rs.100 Crore, which was given to qualified MSMES. MLIS includes all commercial banks (SCBS), non-bank financial companies (NBFC) and all India’s financial institutions (AIFI), which are included in this initiative.

To purchase plants and machines or purchase equipment, or equipment are competent for warranty coverage, which aims to support the production sector.

The program will be applied to all loans punished under MCGS-MSME in 4 years or before the issuance of the scheme operating guidelines. 7 Lakh Krorum is acquired, which will be the first one.

“Imports to buy a loan for purchase of factory and car / equipment for production, MSMES-MSME reciprocal credit warranty scheme is introduced. The reserves, which must have for their expansion and growth in need of debt capital, “the Ministry of Finance said.

Key features:

• To be eligible for the loan guarantee scheme, the borrower must be a micro, small and medium-sized enterprise (MSME) for a valid Udyam account.
• The loan guaranteed amount should not exceed Rs.100 Crore, while the cost of the program may be higher. The minimum value of the equipment / cars should be 75% of the project value.
• Before the Rs.50 Crore for loans, the repayment period may be up to 8 years with a moratorium period. Rs.50 above loans can have a different repayment schedule and moratorium.
• 5% of the loan amount must be deposited at the time of application of warranty composition.
• There is no annual guarantee fee during the year of punishment.
• From the second to the fourth year, the payment is 1.5% from March 31 last year.
• After that, the annual warranty fee is 1% of the annual loan earnings since March 31 of last year.